Turkish Citizenship for Bank Deposits
Obtaining Turkish citizenship is not only possible through property purchase, although this route is the most common among foreign investors.
Indeed, real estate is only one of the types of assets that give the right to obtain a Turkish passport for investments.
Depending on your preferences and financial goals, investing in the financial sector could be a quicker and more profitable solution.
Property Investment: The Traditional Route to Turkish Citizenship
There's a law in Turkey that allows foreigners to acquire citizenship for investments.
One of the most popular methods is the purchase of property. The terms are simple: a Turkish passport can be attained by anyone who invests $400,000 in real estate within the country.
This can be one or more properties, either residential or commercial. Citizenship is granted not only to investors, but also to their families.
However, purchasing property is not the only way to gain Turkish citizenship. Investing in other areas of the economy can be equally, if not more, enticing.
Alternative Investments: The Financial Sector
If property acquisition doesn't appeal to you, Turkey offers other ways of acquiring citizenship through investments.
These could include ventures in commercial enterprises, the stock market, government bonds or bank deposits.
However, in these cases, the minimum investment total is higher – $500,000.
This difference in amounts is due to the need to stimulate construction in the country, which helps support the development of other sectors of the economy.
Nevertheless, the actual costs of purchasing property can approach the amount required for investments in the financial sector, considering additional expenses such as taxes, commissions and other mandatory payments.
Property or Bank Deposit: What's the Difference?
Property valuation under the Turkish citizenship programme is controlled by the state, which can lead to certain complications.
For instance, an appraisal may value a property below its real market cost, compelling investors to acquire pricier property to meet the programme's requirements.
As a result, the cost of a suitable property may exceed $400,000 and reach $450,000 or $470,000.
On the other hand, depending on market conditions, property may be a less liquid asset compared to financial instruments like securities or bank deposits. For savvy investors focused on liquidity, these investments can be more attractive.
Currency Hedging Programme
One of the relevant programmes offered by Turkey is the Kur Koruma Hesabı Yuvam – a foreign exchange hedging account.
This programme allows foreign investors to invest funds in dollars, euros or British pounds with a guarantee of preserving the initial amount.
Investors convert their money into Turkish lira, and the state, represented by the Central Bank, guarantees a full refund after three years, regardless of changes in the exchange rate.
Additionally, banks offer high-interest returns on deposits in Turkish lira, which as of May 2024, reached 40% per annum.
Another advantage of this programme is that profits are tax-free, making it even more attractive.
Benefits of quick citizenship acquisition
Acquiring Turkish citizenship through a bank deposit investment is significantly quicker and simpler compared to buying property. Investors avoid lengthy procedures associated with inspections, TAPU registration, and other formalities, speeding up the passport acquisition process.
For those who value time and want to gain citizenship quickly, this route may be the optimal choice.
Experts note that the citizenship programme through bank deposits is one of the most affordable and appealing worldwide.
Conclusion
The decision between buying property and investing in financial instruments depends on your investment goals and preferences.
Property can offer stability and potential value growth, while financial assets provide higher liquidity and the possibility of quick returns.
Regardless, Turkey offers diverse and flexible options for citizenship acquisition, making it accessible and attractive for foreign investors.
Tolerance Real Estate Agency helps to obtain Turkish citizenship for investment in the financial sector of the economy.
We are glad to answer all your questions, contact us on Whatsapp +90 (532) 158 42 44
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